The budgeting envelope method is when you use envelopes to manage your budget.
For example you make categories for each area of your budget.
mortage, utilities, car note, entertainment, groceries, etc.
each envelope is label with these titles. you assigned a dollar amount for each one based on what you are allocating to spend for each category. once you spend all the money in that envelope for that category you can not spend any more money for that particular category for that month. that's how it works in a nut shell. you can do it manually or you can use the mvelope.com to use the online software.
One of my coworkers just started using this method.